Audit Program #5 - Valuation or Allocation 5 Check clerical...

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Apple Blossom Cologne Company Audit Program for Investments in Securities AP - 5 W/P Ref Initials Existence/Occurrence: Completeness; Rights and Obligations 1. Obtain or prepare a detailed analysis of marketable securities and investments. Show amounts and number of shares (if applicable) at beginning of the period, additions, reductions, and balances at end of period (Q-3). 2. Inquire as to where marketable securities and investments are held. (a) If securities are held by client, inspect certificates (Q-6). (b) If securities are held by a trustee or broker, confirm directly with the trustee, inquiring as to whether any securities are pledged as collateral. 3. Analyze additions during the year and vouch to supporting documents (Q-3). 4. Analyze sales during the year and vouch to supporting documents (Q-3).
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Unformatted text preview: Valuation or Allocation 5. Check clerical accuracy of detail schedule. 6. Trace beginning balances to prior year's working papers. 7. Trace ending balances to trial balance. 8. Compute gain/loss on sales and trace to appropriate income statement accounts. 9. Determine propriety of any income recorded and tie out to income statement accounts. (Q-5). 10. Determine market value of securities at year-end and adjust for change in market value as appropriate. Presentation and Disclosure 11. Discuss the classification of securities with management and reclassify if necessary. 12. Consider the disclosure of details associated with marketable securities and investments....
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